Recently, I have been asked about my thoughts on projects on crypto launchpads such as Game starter, Polkastarter, Enjinstarter, etc. In this post, you learn the step-by-step procedure for researching to find the best performing crypto launchpads.
Before you start locking your money up to the crypto projects listed by IGO and IDO launchpads, you should do thorough research on the crypto launchpad to see if they are reliable. Studying them helps you to decide whether you can trust a crypto launchpad by picking good projects for users to invest in.
Before we go into business, let’s quickly provide a few answers that lighten the activities of crypto launchpads and other crypto marketplaces.
What is the meaning of crypto launchpads?
Crypto launchpads are decentralized platforms on which several developers can get capital for their projects. The capital usually comes from interested investors who get access to check these projects. Some crypto launchpads are operated by top crypto exchanges such as KuCoin, Binance, and Bitpanda.
What’s the difference between ICO, IEO, IPO, IDO, and IGO launchpads?
Over the years, crypto experts have used several terms regarding crypto launchpads. While you might have heard about many of these terms, a few of them can still sound unfamiliar. Here’s what you need to know:
IPO — initial public offering. This term is casually mentioned in the context of crypto launchpads. That’s because it’s the process by which private companies can go public by selling their stock to the public. So this doesn’t have much to do with crypto. Government institutions highly regulate an IPO.
ICO — this term means Initial Coin Offering. It describes the sale of new cryptocurrencies or token in the market. Most project owners sell their coins on their official websites during an ICO. In 2017, it became the hottest thing happening in the space, with many intelligent investors getting scammed. Further research in 2018 revealed that many ICO projects were worthless.
IEO — initial exchange offering. That is an improved form of an ICO because project developers offer their product directly on a crypto exchange, making it easier for experienced investors to buy. An IEO has advantages over an ICO as the exchange has to evaluate the project before listing it.
IDO — initial DEX offering. The latest form with the main difference from the IEO is that the whole process takes place on a decentralized exchange.
IGO—initial game offering. Similar to an ICO, the difference is that the crypto launchpad lists gaming projects based on NFTs as in-game currency and rewards.
How does a crypto launchpad work?
Most project developers place their unique product on a crypto launchpad that meticulously reviews it. If the project meets all standard requirements, the crypto launchpad allows users to invest money in the project. The advantage for experienced users is that they can invest in promising projects early.
How to buy tokens on a launchpad?
Buying tokens on launchpads is usually very simple and comparable to the usual process when buying cryptocurrencies. However, some launchpads require buyers to meet KYC (know your customer) requirements.
Step 1: Research A Crypto Launchpad’s Fundamentals.
To trust a launchpad with your money, you need to know whether you can trust it. For that, you need to start with its fundamentals.
Here are questions you need to ask:
- Is the crypto launchpad centralized or decentralized? A lot of centralized platforms are owned by big exchanges. That already gives me a lot of information. For example, I’m not too fond of Bittrex because of its bad user experience. But do I even want to rely on the big players when I can use a decentralized exchange instead?
- Is the platform built autonomously or on another blockchain? My first impulse here would be to trust launchpads based on an established blockchain. In any way, you need to understand how they are connected and why the team behind the launchpad decided to use a specific blockchain over another.
- Who are the people behind a launchpad?
- What is other users’ experience with this platform?
Most of these steps are covered in detail in my step-by-step tutorial on how to research cryptocurrencies. The research process behind it is the same. You can check it out here:
Step 2: Research The token Issued By The NFT launchpad
Launchpads such as Game starter, Polkastarter, and Games have their tokens. For investors, this has some important implications:
- What is the purpose of the tokens? What can owners use them for?
- Can owners get discounts when investing in projects listed on the NFT launchpad?
- Must investors hold the NFT to be eligible to invest?
- Can token owners vote on any project listing? If so, do whales get a say in voting, or can each holder only have a vote regardless of the number of tokens they hold?
Step 3: Find The Process For Listing A Token On A Launchpad.
One of the critical tasks of an NFT launchpad is to scrutinize a token before listing it.
As an investor, you need to understand NFT launchpads’ selection criteria. That is important because strict selection criteria ensure that solid projects will be listed.
What you need to know:
- How to register a project to get listed on NFT launchpads to start raising funds?
- Do the NFT launchpads team do background checks on the projects?
- Does the selection team meet with the project team to gather further information?
- What is the rejection rate?
- Who are the people responsible for deciding on whether a project gets listed? What are their qualifications?
The issue is that many launchpads do not give much information on many questions. So if the NFT launchpad does not provide comprehensive information on its selection criteria, you can go to their Telegram, Twitter, or other social media handles to contact the team directly for help.
Step 4: Looks At Past NFT Projects Which Have Been Launched By The NFT launchpad And Check How They Are Performing Presently.
NFT launchpads are eager to convince potential investors and creators that the NFTs issued have increased since it was initially launched. However, that should not be the only yardstick you will use to measure.
Here are some crucial things you should check:
- How many active users show interest in the project a few months after being listed on an NFT launchpad?
- How large is the community growing?
- What is the whole team working on? Are there any new developments?
- What does the NFT project’s activity on social media look like? If they are shilling the price of their token, then it is a red flag.
Step 5: If You Accept The NFT Launchpad Is Reliable, You Can Analyse The Listed Projects.
It’s a good sign when n NFT launchpad puts as much information as possible about a listed project on its website. Also, always go to the project’s website to cross-check the information.
Doing an IDO, IEO, IGO, or ICO are all intelligent ways for crypto start-ups to raise funds. I think it is a revolution against the traditional way of acquiring funds from venture capital/private equity companies. However, you should never forget that the market is still largely unregulated, and most start-ups will fail. While the investment returns could be high, you should also be mindful of the risk that comes with it.